South Korea's SK hynix market value surpasses $1 trillion

The market value of South Korean memory chip maker SK hynix has climbed past $1 trillion on Wednesday, driven by surging global demand for computing hardware used in artificial intelligence applications, News.Az reports, citing AFP.

The milestone follows a similar achievement by rival Samsung Electronics, whose market capitalisation also exceeded $1 trillion earlier this month.

The development has reportedly fuelled frustration among some Samsung employees, even as labour negotiations led to an agreement with management that secured substantial bonuses and helped avoid a strike.

SK hynix shares rose more than 11% in early afternoon trading. The company supplies advanced high-bandwidth memory chips to Silicon Valley-based AI chip leader Nvidia.

With its new valuation, SK hynix joins an exclusive group of Asian firms valued at $1 trillion or more, alongside Samsung and Taiwan’s semiconductor manufacturer TSMC, according to Bloomberg.

Around the world, governments and technology companies are investing hundreds of billions of dollars into building AI data centres designed to train and operate tools such as chatbots, image generators, and AI agents. This surge in investment has fuelled rapid growth for semiconductor companies that produce the chips required to process vast volumes of data.

In April, SK hynix reported that its net profit had surged nearly 400% to a record high in the first quarter, benefiting from the AI boom. The company said strong demand helped offset concerns that conflict in the Middle East could disrupt the semiconductor industry.

At Samsung, union members on Wednesday approved a deal with management under which approximately 78,000 employees are expected to receive bonuses of about $370,000 each this year, based on operating profit estimates.

According to Samsung’s union, SK hynix workers received bonuses more than three times higher than those awarded at Samsung last year.

The growing financial rewards at both companies have significantly raised the social status of semiconductor engineers in South Korea.

A SK hynix-branded jacket recently went viral on social media as a symbol of wealth and professional success, with parody posts portraying it as a “golden ticket” to luxury shopping and improved dating prospects.

Yonhap news agency reported that jobs at Samsung and SK hynix are now seen as boosting “marriage market value,” citing rising desirability rankings compiled by matchmaking agency Sunoo. These rankings reportedly place chip engineers closer to traditionally prestigious professions such as doctors and lawyers.

News.Az 

By Nijat Babayev